Destiny Media Achieves First Operating Profit From Doubling of Play MPE® Revenues

Quarterly Revenue Growth of 42% Exceeds Management Projections

VANCOUVER, British Columbia, July 14  -- Destiny Media Technologies (OTC Bulletin Board: DSNY), the global leader in the secure distribution of pre-release music to radio and provider of instant play streaming media, is pleased to announce that third quarter revenues grew by 42% from the previous quarter (80% over the third quarter in fiscal 2008) on the strength of better than anticipated revenue for its Play MPE® system.  During the quarter the Company became profitable and realized positive cash flow from operations.  Play MPE® revenue grew by 114% from the same quarter in the prior year.

“The Company has ‘crossed the chasm’ into profitability and we expect revenues, income and positive cash flow to continue to grow into the foreseeable future”, commented Destiny CFO, Fred Vandenberg.  “We have experienced 17% compounded quarter over quarter revenue growth over the past eleven quarters which has resulted in income from operations.  We project revenue to continue to rise in our fourth quarter leading to a conservatively estimated 30% increase in net income and to realize a profit for the year ended August 31, 2009.”

According to Destiny CEO, Steve Vestergaard, “We have worked closely with the record labels to build a system that works well with their internal business processes and they are comfortable relying on our system as they phase out physical CD’s completely.  We expect our profits from Play MPE® business to grow into the foreseeable future as the labels expand usage internally and we expand internationally.  In addition, we expect to layer in new revenue streams for Clipstream® products that will begin rolling out in Q1 of next year.”
 
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in United States dollars)
Unaudited
                                                                        Three Months     Three Months      Nine Months       Nine Months
                                                                               Ended                  Ended                  Ended                  Ended
                                                                             May 31,               May 31,               May 31,               May 31,
                                                                                2009                    2008                    2009                    2008

                                                                                   $                          $                          $                          $

                                                                                                                                                                       

Revenue                                                                665,829               369,098            1,687,878            1,085,555

 
Operating expenses
General and administrative                                    181,749               206,646               540,654               838,385
Sales and marketing                                                193,044               323,330               634,256            1,244,920
Research and development                                    206,559               335,540               652,823            1,120,829
Amortization                                                           10,675                 11,781                 27,407                 33,326

                                                                               592,027               877,297            1,855,140            3,237,460

Income (loss) from operations                                 73,802              (508,199)            (167,262)         (2,151,905)
Other income (expenses)
Other income                                                           12,755                 31,384                 72,877                 73,499
Interest income                                                          1,858                      492                   2,964                 15,451

Interest and other expense                                           (942)                (9,237)                (2,531)              (18,480)
Settlement gain                                                         15,008                        —                 15,008                        —

Net income (loss)                                                 102,481              (485,560)              (78,944)         (2,081,435)

 
 
About Destiny Media Technologies
Destiny (www.dsny.com) provides technical solutions which facilitate the transfer of various forms of media across the internet.  Our solutions make this process more secure and more efficient.  From our proprietary technologies we have developed two main product lines. Our products include the Play MPE™ System (www.plaympe.com), and Clipstream® (www.clipstreamaudio.com) and video (www.clipstream.com). 
Company Contact:
Fred Vandenberg
CFO Destiny Media Technologies, Inc.
604 609 7736 x236
fredv@dsny.com
Safe Harbor Statement:
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This release contains forward looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of competitive products and pricing, product demand and market acceptance, new product development, reliance on key strategic alliances, availability of raw materials, the regulatory environment, fluctuations in operating results and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.
 

Keith Loh